Can I get a loan while on an IVA?

In most cases, your insolvency practitioner will probably advise against further borrowing during an IVA. Lenders who are prepared to offer loans – or other forms of borrowing – to someone on an IVA will probably charge high interest rates. This could make it harder for you to get back on track with your finances.

If you’re struggling to pay your IVA, you should get in touch with your supervisor. They can reduce your payments by up to 15% if you can provide evidence of a change in circumstances. If you need more help, they can propose a variation to the terms of your IVA to try and get your payments reduced further.

Your insolvency practitioner is more likely to agree to some forms of borrowing than others, such as certain salary reduction schemes. This is because this kind of scheme can leave you better off at the end of the month.

For example, if you pay for a train season ticket loan through a salary reduction scheme, it may be cheaper than paying for standard train tickets each day. This would leave you with more disposable income each month, so your insolvency practitioner might agree to it.

Your insolvency practitioner will need to see full details of any scheme before agreeing you can go ahead.

Some lenders offer IVA early settlement loans. Lenders promote these loans by saying they release you from your IVA early and help you build your credit score.

But IVA early settlement loans usually come with high interest rates. The chances are you’ll end up paying more and for longer than you would on your IVA.

If your circumstances improve and you’re keen to pay off your IVA early, you should talk to your IVA supervisor. They’ll be happy to talk you through your options.